Mortgage Servicing Portfolios Of Top Five U.S. Banks Have Shrunk Dramatically

A recent report on NASDAQ.com shows just how much the third-party mortgage servicing portfolios of the largest U.S. banks shrank during the past five years.

According to the report, the five largest U.S. banks slashed their third-party servicing portfolios by nearly 9%, as stricter capital requirements and poor-quality legacy mortgages resulted in them deciding to sell off their servicing rights.

Bank of America slashed its mortgage servicing portfolio to just a quarter of its size at the end of 2011, while U.S. Bancorp was the only bank in the top five to report steady growth in its portfolio, according to the report.